NSW will return to surplus within two years under the Minns Labor government’s first budget, despite more than $18 billion in new spending initiatives and an $8 billion budget shortfall predicted for 2023-24.

Treasurer Daniel Mookhey has prepped the state for more cuts and new taxes as he embarks on a budget repair program after COVID-19 and election-year spending under the former Perrottet government pushed the state’s deficit to $10 billion in 2022-2023 and net debt to $80 billion.